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What is one airmile worth?

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A question that I get asked quite often is how much is 1 airmile worth? The answer to this question is not a simple one.

As we know the airmiles-to-dollar ratio is fairly simple and we try to collect airmiles at a rate of less then $0.40 if at all possible!

The actual value of an airmile is dependant on what you purchase. The way you calculate what an airmile is worth is by simply finding the item. Find the real value of the item and divide the airmiles by the real value. Then you'll get the number of airmiles for one dollar.

I made a post about buying gift certificates with airmiles. In this case the gift certificates produced an airmile worth anywhere between 6.25 to 9.25. Meaning 6.25 airmiles is equivalent to one dollar!

Like I've stated before the best value for your airmiles is buying flights to continental north america using your Gold Mosiak Credit Card.

Comments

Is there a rule of thumb that you would suggest is a “good” or “bad” through airmiles? I bought an Ipod touch, equating to $8.50/mile. It didnt seem like a good deal, (but i was planning on buying it anyways…)

Are there certain product that are better “buys” than others though airmiles? (generally speaking of course)??

Generally speaking the gift cards seems to be a better ‘airmiles value’ then other stuff…. but not all gift cards.

8.5 is an ok ratio. I think anything higher than that it’s getting too high.

hope that helps.

1 airmiles equals about 15 cents.

That (generally) should guage whether or not you’re getting good value from your airmile trade-in / purchase.

1 Airmile equaling 15 cents is a VERY good rate. I don’t think you see it that good often. On average probably 10-13 cents, on a really good deal, 16 cents.

So if you get 1 Airmile for every $10.00 spent at a sponsor
your return is 1.% correct.Than aren’t you much better to use a cash back card that offers 1,2 or 3 % cash back and you can fly or buy whatever you want?

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